Head to Head Analysis: Clipper Realty (CLPR) versus Essex Property Trust (ESS)

Essex Property Trust (NYSE: ESS) and Clipper Realty (NASDAQ:CLPR) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Institutional & Insider Ownership

99.6% of Essex Property Trust shares are owned by institutional investors. 3.3% of Essex Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Essex Property Trust and Clipper Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Essex Property Trust 38.33% 8.03% 4.11%
Clipper Realty -6.35% -3.57% -0.64%

Dividends

Essex Property Trust pays an annual dividend of $7.00 per share and has a dividend yield of 2.7%. Clipper Realty does not pay a dividend. Essex Property Trust pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clipper Realty has raised its dividend for 23 consecutive years.

Earnings and Valuation

This table compares Essex Property Trust and Clipper Realty’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Essex Property Trust $1.37 billion 12.51 $932.45 million $7.78 33.37
Clipper Realty $99.70 million 1.98 $43.09 million N/A N/A

Essex Property Trust has higher revenue and earnings than Clipper Realty.

Analyst Recommendations

This is a summary of recent ratings and target prices for Essex Property Trust and Clipper Realty, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Essex Property Trust 2 9 7 0 2.28
Clipper Realty 0 0 3 0 3.00

Essex Property Trust presently has a consensus target price of $266.79, suggesting a potential upside of 2.75%. Clipper Realty has a consensus target price of $16.00, suggesting a potential upside of 44.01%. Given Clipper Realty’s stronger consensus rating and higher possible upside, analysts plainly believe Clipper Realty is more favorable than Essex Property Trust.

Summary

Essex Property Trust beats Clipper Realty on 10 of the 14 factors compared between the two stocks.

About Essex Property Trust

Essex Property Trust, Inc. is a self-administered and self-managed real estate investment trust. The Company is engaged primarily in the ownership, operation, management, acquisition, development and redevelopment of predominantly apartment communities, located along the West Coast. Its segments include Southern California, Northern California, Seattle Metro and Other real estate assets. The Company owns all of its interest in its real estate and other investments directly or indirectly through Essex Portfolio, L.P. (the Operating Partnership). Its properties include Mio, Form 15, Emerson Valley Village and Ashton Sherman Village. As of December 31, 2016, it owned or held an interest in 245 communities, aggregating 59,645 apartment homes, excluding its ownership in preferred equity investments, as well as two operating commercial buildings (totaling approximately 140,564 square feet), and six active development projects with 2,223 apartment homes in various stages of development.

About Clipper Realty

Clipper Realty, Inc. is a real estate investment trust, which acquires, owns, manages, operates and repositions multi-family residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. The Company’s segments include Commercial and Residential. As of June 30, 2016, it owned two residential/retail rental properties at 50 Murray Street and 53 Park Place in the Tribeca neighborhood of Manhattan, referred to as the Tribeca House properties. As of June 30, 2016, it also owned a residential property complex in the East Flatbush neighborhood of Brooklyn consisting of 59 buildings, referred to as the Flatbush Gardens properties or complex. As of June 30, 2016, it owned two primarily commercial properties in Downtown Brooklyn (one of which included 36 residential apartment units), referred to as the 141 Livingston Street property and the 250 Livingston Street property, and also owned the Aspen property.

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